Class Action Lawsuit Against State Farm in North Carolina
A North Carolina State Farm policyholder, Craig Brewer, has filed a class action lawsuit against the insurance company, alleging undervaluation of total loss.
The lawsuit claims that State Farm reduced the retail cost of comparable vehicles, resulting in a 5.5% reduction in Brewer's total loss payout. Similarly, the suit alleges that class members' total loss payouts were reduced by 4-9%.
[T]he plaintiff only contests State Farm’s blanket reduction of the retail cost of comparable vehicles on behalf of himself and the class. Therefore, none of the total loss vehicles have to be revalued.
This lawsuit is similar to complaints filed in six other states.
Author's summary: State Farm faces lawsuit over undervalued total loss claims.